Dennis Small to Estulin Conference:
Glass-Steagall or the Queen's Economic Concentration Camps; Those Are Your Options
by Dennis Small
The following is a translation of Dennis Small's video-recorded remarks to Daniel Estulin's June 2 seminar in Barcelona, Spain, on “World Government and the Bilderberg Club.”
Good morning. My name is Dennis Small, and I'm the Ibero- American editor of Lyndon LaRouche's Executive Intelligence Review magazine (EIR). I'd like to thank Daniel for the invitation to be with you today and share some words, and thoughts, regarding the international crisis.
When the international financial bubble exploded in 2007 and 2008, two highly significant things happened. First, Mr. LaRouche, who had forecast that this financial explosion would occur weeks before it actually occurred -- he spoke of this on July 25, 2007 -- when the visible explosion occurred, he said that there had to be a bankruptcy reorganization of the entire international financial system, which had entered into a breakdown crisis of the existing system. And that this reorganization had to include the restoration of the 1933 Glass-Steagall act of President Franklin Delano Roosevelt.
Now, LaRouche's warnings and recommendations were disregarded, and what happened instead was that, in the international financial centers whose headquarters are in the City of London, with branch offices in Wall Street, it was decided that they would bail out the speculative cancer instead. Logical enough, since they are the owners of that cancer. It's sort of like going to a doctor when you have an oncological or cancer problem, and realizing that the doctor sitting behind the desk is the cancer itself.
So what the international financial centers did as a matter of policy, beginning in 2008, was to first launch a series of financial bail-outs of astounding proportions. For starters, so-called “quantitative easing'' from 2008 to 2012 added up to some $4.5 trillion in bail-outs, as can be seen in Figure 1. But that's not all. Moving forward, the prescription issued by Dr. Cancer is to keep feeding the cancer, to keep going with quantitative easing, only now at a rate that is going to reach the level -- based on what is already being done by the U.S. Federal Reserve, the European Central Bank, the Bank of England, and also the Bank of Japan -- of about $11 trillion of purely speculative quantitative easing by the end of 2014. And of course at the same time they are imposing dramatic austerity and cuts in living standards and state budgets of the countries that are part of the trans-Atlantic financial sector. So that's $11 trillion by the end of 2014.
But even that wasn't enough. Back in 2009 or so, the same owners of the cancer realized that this wasn't sufficient, that it wasn't going to do the trick, and they began to activate what is know known by the quaint name of, not “bail-out,” but “bail-in.”
The policy direction for this operation of so-called bail-ins comes directly from the Queen of England. It comes from the British Commonwealth, and it was imposed on the Group of 20 nations at the famous G-20 meeting held in London in 2009. Such a bail-in was then carried out in the case of Cyprus, and it became known as the “Cyprus template.''
What does “bail-in'' mean? Well, the bottom line is that it means outright armed robbery against the deposits of account holders in the banks. They are called “unsecured creditors,'' and they forcibly imposed on Cyprus the same thing that they did by tricking people in Spain, such as in the case of Bankia bank and others, to trade in their deposits in exchange for so-called “preferentes'' stocks in the bank. And then it turned out that people had become owners of a bank which, suddenly, was worth absolutely nothing, and they lost everything.
The bail-in policy of the Queen of England and her friends on Wall Street and the City of London, is the Cyprus Template applied to the entire planet. And it is the existing policy in the United States, as codified in the Dodd-Frank bill; it is the existing policy in Europe, with laws that are in the process of being adopted by the European Parliament, and what the European Union and the ECB, the infamous Troika, are implementing.
The amount of money that they intend to steal through bail-ins would add another $7 trillion, on top of the $11 trillion of purely speculative quantitative easing. So we are talking about a total, therefore, by the end of 2014, of some $18 trillion in pure speculative robbery, in order to feed the cancer.
Question: Is it going to work?
Answer: Of course not!
Because the total amount of world financial aggregates, the size of the entire cancer, is, according to EIR's best estimates, about $1.6 quadrillion. As you can see in Figure 2, if you look at the total financial aggregates, the components of stocks, and of public, private, foreign and domestic debt, as large as they are, are only some $200 trillion -- nothing, compared to the derivatives, the speculative instruments which comprise about 90% of all world financial aggregates.
Now, $1.6 quadrillion is 100 times larger than the total amount of bail-outs and bail-ins combined. A bail-out involving just 1% of the total size of the financial bubble is absurd. It is not going to work. It cannot work. This system is coming down, like it or not. So the policy doesn't work for an actual bail-out.
But what it does work for, and this is the intentional policy of the British Monarchy and their friends on Wall Street and the City of London, is to kill people. Because in addition to the financial looting, what is going on to try to maintain this bubble, is a drastic reduction in the level of employment, in the standard of living, in the very existence of the population. What it has worked for, and it has worked very well indeed, is to turn Europe into the equivalent of the concentration camps of Nazi Germany, which were also imposed thanks to British financial interests.
One of the indicators or markers of this process, as those of you here know very well, is the level of unemployment, and especially youth unemployment. Because a nation that does not have productive employment, that does not have a mission, that does not have a future for its youth, itself has no future and has been bestialized. And what we have seen is that, during this same period, from 2008 to 2012, while the quantitative easing was going on, youth unemployment in Europe has basically doubled, from about 20 to 40% (see Figure 3). In the cases of Greece and Spain, Greece has already exceeded 60% youth unemployment, and Spain is rapidly approaching that level of 60%.
This is unacceptable. This is inhuman. This is a concentration camp. And it is the future that awaits us all under this system, if we don't change it.
Now, it can be changed, it must be changed, and for many years Mr. LaRouche has not only forecast this disintegration, but he has also indicated what the solution is as well.
What has to be done, both in the United States and internationally, is to adopt the equivalent of Franklin Roosevelt's Glass-Steagall law: an absolute, total separation between productive, commercial banking, on the one hand; and speculative investment banking, on the other. Just as was done under the Glass-Steagall law: total separation. The part involving the illegitimate speculative debt, too bad -- they can fend for themselves, but they will stop stealing money from government budgets, and they will stop destroying the labor force. That part will simply be sunk: it won't be paid, it is illegitimate debt -- bankruptcy reorganization.
But in addition to Glass-Steagall, other measures are required. In the case of Spain and other European countries, these include:
Exit the euro. The euro system is a system of destruction and nothing more. The euro is finished. So we have to leave the euro and return to national currencies, whose exchange rates with other currencies are defended from financial warfare with protectionist measures, such as exchange controls, capital controls, and so forth.
So: number one, Glass-Steagall; number two, leave the euro and return to national currencies. Number three: each nation must establish a state-run National Bank, along the lines prescribed by Alexander Hamilton, in order to issue productive credit for activities which yield high technology employment for the population. Under such directed credit, there can be a private banking sector -- fine. But it cannot be parasitical; it has to participate in this project. And this means advanced technologies, such as nuclear energy. None of this anti-scientific foolishness -- and it is that -- such as solar and wind energy, and so forth.
International agreements must also be reached with sovereign nations that will also have left the euro, to establish a new international economic order based on fixed exchange rates, protected by exchange controls. For what? For using a credit system to launch great infrastructure projects on a world scale, which are needed to develop productivity in each and every nation.
These are the choices we face. There is no third way. Either we choose the path of Glass-Steagall and a credit system, to sink the British Queen, the City of London, and Wall Street; or we are going to end up, as happened in the 1930s, with concentration camps such as we are already seeing in the nations of Europe -- economic concentration camps where there is no future for our youth. Those are your options.
I thank you for the opportunity to share these ideas with you, and I hope you will have a very fruitful discussion process today.